Fortnightly - Washington Gas Energy Serviceshttp://www.fortnightly.com/tags/washington-gas-energy-services
enVendor Neutralhttp://www.fortnightly.com/fortnightly/2012/01/vendor-neutral
<div class="field field-name-field-import-category field-type-text field-label-inline clearfix"><div class="field-label">Category:&nbsp;</div><div class="field-items"><div class="field-item even">Vendor Neutral</div></div></div><div class="field field-name-field-import-volume field-type-node-reference field-label-inline clearfix"><div class="field-label">Magazine Volume:&nbsp;</div><div class="field-items"><div class="field-item even">Fortnightly Magazine - January 2012</div></div></div><div class="field field-name-field-import-image field-type-image field-label-above"><div class="field-label">Image:&nbsp;</div><div class="field-items"><div class="field-item even"><img src="http://www.fortnightly.com/sites/default/files/1201-VENpic1.jpg" width="723" height="497" alt="Renewable Energy Group signed a contract to supply biofuel processed from waste oil to Hawaiian Electric’s Campbell generating station." title="Renewable Energy Group signed a contract to supply biofuel processed from waste oil to Hawaiian Electric’s Campbell generating station." /></div><div class="field-item odd"><img src="http://www.fortnightly.com/sites/default/files/1201-VENpic2.jpg" width="500" height="223" alt="GE recently installed six Frame 7FA gas turbines at CFE’s Manzanillo plant, and signed a 15-year service and support agreement." title="GE recently installed six Frame 7FA gas turbines at CFE’s Manzanillo plant, and signed a 15-year service and support agreement." /></div><div class="field-item even"><img src="http://www.fortnightly.com/sites/default/files/1201-VENpic3.jpg" width="1594" height="1456" alt="As part of The EV Project initiative, Ecotality and Walmart partnered to install Blink Pedestal electric vehicle charging stations at Walmart stores in California and the Pacific Northwest." title="As part of The EV Project initiative, Ecotality and Walmart partnered to install Blink Pedestal electric vehicle charging stations at Walmart stores in California and the Pacific Northwest." /></div><div class="field-item odd"><img src="http://www.fortnightly.com/sites/default/files/1201-VENpic4.jpg" width="1056" height="450" alt="GE entered an agreement to distribute charging stations at CODA Automotive electric vehicle sales locations." title="GE entered an agreement to distribute charging stations at CODA Automotive electric vehicle sales locations." /></div><div class="field-item even"><img src="http://www.fortnightly.com/sites/default/files/1201-VENpic5.jpg" width="655" height="437" alt="Duke Energy Renewables acquired the 1-MW Holiness PV project from ESA Renewables, along with two other 1-MW facilities in North Carolina." title="Duke Energy Renewables acquired the 1-MW Holiness PV project from ESA Renewables, along with two other 1-MW facilities in North Carolina." /></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><h4>Generation</h4>
<p><span class="boldred">Hawaiian Electric</span> selected <span class="boldred">Renewable Energy Group</span> (REG) to supply biodiesel for Hawaiian Electric’s 110-MW combustion turbine generator at Campbell Industrial Park Generating Station, the first utility-scale combustion turbine that runs entirely on biodiesel. REG already supplies biodiesel to the generating station, and under the new contract—subject to state regulatory review—will continue supplying 3 to 7 million gallons of fuel each year for three additional years. REG’s biodiesel is processed from used cooking oil and waste animal fats.</p>
<p>The <span class="boldred">Shaw Group</span> renewed a contract with <span class="boldred">Exelon Generation</span> to provide maintenance, modifications, and construction services to its fleet of nuclear generating plants, including 17 reactors at 10 sites—in Illinois, Pennsylvania, and New Jersey. Shaw began providing fleet-wide nuclear maintenance service to Exelon in 2001. Details of the contract weren’t disclosed.</p>
<p><span class="boldred">GE</span> signed a long-term services agreement with <span class="boldred">Comisión Federal de la Electricidad</span> (CFE), the Federal Electricity Commission of Mexico, covering six GE gas turbines installed for the repowering of Manzanillo Thermoelectric, the largest thermo power generation project undertaken by the Mexican government in the last two decades. Under the $200 million agreement, GE will support the performance of the gas turbines for 15 years. Six GE Frame 7FA gas turbines recently were installed at the site and the first three units were scheduled to be commissioned by the end of 2011. The full plant is expected to be running by the summer of 2012, adding 900 MW and bringing the total site output to 1,500 MW.</p>
<p>The Kent County Commissioners and Board of Education signed a 20-year contract with <span class="boldred">Washington Gas Energy Services</span> (WGES), to build a 1.58 MW solar array to power Kent County High School, Worton Elementary School, and the Kent County Community Center. The ground-mounted system, owned by WGES, will be installed by <span class="boldred">Standard Solar</span> on 10 acres of land owned by the board of education. The county will purchase the electricity generated under a long-term power purchase agreement with WGES. Construction began in November 2011 and is expected to be completed in late spring 2012.</p>
<p><span class="boldred">EMCOR Group</span> was awarded a contract to renovate the cogeneration facility it built originally in the early 1990s at the South District Waste Water Treatment Plant for <span class="boldred">Miami Dade Water and Sewer Department</span> in Miami, Fla.</p>
<p><span class="boldred">ENN Solar Energy </span>and<span class="boldred"> National Energy Renewable Corp.</span> (NERC) installed a 4.3-MW photovoltaic (PV) power plant at the Edgeboro landfill in East Brunswick, N.J. The PV modules at the site use what ENN Solar calls a “floating” architecture that anchors the panels to the landfill surface without penetrating the landfill cap. </p>
<p><span class="boldred">Siemens Energy</span> launched its new 6-MW direct drive wind turbine. The new SWT-6.0, designed for offshore sites, will be available with rotor diameters of 120 and 154 meters. Siemens says the SWT-6.0 is the lightest machine in its class, and the entire electrical system, including the medium voltage system and the full converter, is enclosed in the nacelle, allowing faster and safer onshore pre-commission testing.</p>
<h4>EVs and Storage</h4>
<p><span class="boldred">Ecotality</span> and <span class="boldred">Walmart</span> partnered to install Blink Pedestal electric vehicle (EV) charging stations at select Walmart stores in California, Oregon, and Washington for The EV Project, to collect data to guide the implementation of EV infrastructure. ECOtality will install Blink charging stations at more than 10 Walmart locations, which were selected based on traffic patterns, regional attractions, transportation hubs, guidance from Walmart, and input from regional partners. </p>
<p><span class="boldred">KCP&amp;L</span> is using Coulomb’s ChargePoint network to access EV charging station data collected for a three-year pilot program in and around the Kansas City region. The program consists of eight diverse program-partner EV charging sites including a community college, hospital, manufacturing plant, corporate office, municipal, and retail locations. KCP&amp;L’s pilot project is part of an <i>American Recovery and Reinvestment Act</i>-funded project led by the Metropolitan Energy Center (MEC). KCP&amp;L is working with the Kansas City Regional Clean Cities Coalition, a program of MEC, to administer the grant.</p>
<p><span class="boldred">Nissan North America</span> (NNA) selected <span class="boldred">Coulomb Technologies</span> ChargePoint network to provide EV public charging infrastructure locations for Nissan LEAF drivers. ChargePoint Network now is fully integrated into the Nissan LEAF website, showing current and future ChargePoint locations, as well as other public charging stations documented by the U.S. Department of Energy.</p>
<p>EV manufacturer <span class="boldred">CODA Automotive</span> and <span class="boldred">GE Energy Industrial Solutions</span> finalized an original equipment manufacturer (OEM) agreement for the sale and distribution of the GE WattStation level-2 wall-mount EV charging station at CODA retail outlets.</p>
<h4>Transactions</h4>
<p><span class="boldred">Siemens</span> agreed to acquire <span class="boldred">eMeter</span>, in a deal that was expected to close in December 2011. eMeter becomes part of the smart grid division of Siemens’ infrastructure and cities sector, and a global business segment focusing on meter data management. eMeter will continue operating from San Mateo, Calif. JP Morgan advised eMeter in the transaction. Details weren’t disclosed.</p>
<p><span class="boldred">SolarCity</span> and <span class="boldred">Bank of America Merrill Lynch</span> agreed to financing terms for SolarStrong, SolarCity’s five-year plan to build more than $1 billion in solar power projects for privatized U.S. military housing communities across the country. SolarStrong is expected to create up to 300 MW of solar generation capacity, and according to SolarCity it would be the largest residential solar PV project in American history. Private equity firm U.S. Renewables Group (USRG) served as financial adviser. SolarCity and USRG began the loan guarantee application process under DOE’s Section 1705 loan guarantee program in October 2010, and BofA Merrill subsequently joined the application as lender. The DOE announced a conditional commitment of a partial loan guarantee for SolarStrong on Sept. 7, 2011, but the parties were unable to finalize the loan before the September 30 program deadline. SolarCity and BofA Merrill continued to work to close SolarStrong without the loan guarantee. </p>
<p><span class="boldred">NRG Energy</span> acquired San Francisco-based <span class="boldred">Solar Power Partners</span>, a developer of commercial and industrial distributed solar projects, including 30 MW of distributed solar projects in operation or under construction, and rights to development projects in California, Hawaii, Arizona, Connecticut, New Mexico, Massachusetts, New Jersey, Ontario and Puerto Rico.</p>
<p><span class="boldred">Duke Energy Renewables</span> acquired three 1-MW commercial solar projects in the southwestern corner of North Carolina, and now owns seven commercial solar farms in the state. Duke Energy Renewables purchased the portfolio of PV projects from <span class="boldred">ESA Renewables</span>, which designed and built the generation sites. The portfolio consists of the Murphy, Wingate, and Holiness projects. The power and renewable energy certificates generated by each project will be sold under 10-year contracts through Blue Ridge Mountain EMC to the Tennessee Valley Authority, as part of TVA’s Generation Partners program. ESA Renewables will handle operations, monitoring and maintenance.</p>
<p>The <span class="boldred">AES Corp.</span> received approval from the <span class="boldred">Public Utilities Commission of Ohio</span> (PUCO) for its acquisition of DPL. The companies filed their merger application with the PUCO in May 2011, and filed a settlement agreement with all parties to the application in October. The merger application and settlement were supported by the staff of the PUCO, the City of Dayton, The Ohio Hospital Association (OHA), Ohio Partners for Affordable Energy (OPAE), Industrial Energy Users-Ohio, OMA Energy Group and the Ohio Energy Group.</p>
<p><span class="boldred">Direct Energy</span> acquired <span class="boldred">Home Warranty of America</span> (HWA), which provides whole home warranty services directly to customers and through a national network. The acquisition complements Direct Energy’s 2010 acquisition of Florida-based Clockwork Home Services, which provides heating, cooling, plumbing and electrical services in North America. Subject to regulatory approval, the transaction is expected to close during the first quarter of 2012.</p>
<h4>Energy Services</h4>
<p><span class="boldred">Maryland Port Administration</span> awarded a $27.6 million energy performance and maintenance contract to <span class="boldred">Pepco Energy Services</span>. The contract covers 14 buildings totaling more than 570,000 square feet. Pepco Energy will install energy conservation systems and 750 kW of rooftop PV capacity, in the two largest systems installed under Maryland Department of Transportation solar initiatives. The project also includes measurement and verification services, along with equipment maintenance. Construction is scheduled to be completed in November 2012.</p>
<h4>Transmission</h4>
<p><span class="boldred">PJM Interconnection</span> completed the switchover to its new Advanced Control Center (AC2) grid and market management program. The $200 million program resulted from more than five years of design, development, and testing. PJM initiated the program to meet new standards for security and resiliency to ensure the continuity of the $35 billion-per-year wholesale electricity markets that PJM administers. The AC2 program reduces risk because two fully staffed primary control centers better ensure uninterrupted operation of markets and grid control if functionality were to be lost at either center one.</p>
<p><span class="boldred">Southern California Edison</span> (SCE) selected <span class="boldred">PAR Electrical Contractors</span>, a Quanta Services operating unit, to build transmission infrastructure for SCE’s Devers-Palo Verde 2 (DPV2) transmission project. Quanta’s scope of services for the project consists of the construction of a new, 153-mile, 500 kV electric transmission line in an existing corridor. Construction is expected to begin by the end of the fourth quarter of 2011 and line construction activities are estimated to be complete in the third quarter of 2013. The main component of the project consists of building a new 111-mile transmission line between SCE’s Devers substation near Palm Springs and the new Colorado River substation, near Blythe, Calif. The project also includes a new 42-mile, 500 kV transmission line between Devers substation and SCE’s Valley substation in Menifee, Calif.</p>
<p><span class="boldred">American Electric Power</span> selected <span class="boldred">Quanta Services</span> to provide transmission infrastructure for two AEP Transmission subsidiaries. Under agreements with AEP Ohio Transmission and AEP Oklahoma Transmission, Quanta will rebuild or replace existing transmission systems including, but not limited to, structures, conductor and shield wire. The infrastructure services provided by Quanta will be performed on more than 900 miles of existing transmission lines for an estimated aggregate value of more than $300 million. Work has begun and should be completed in 2014.</p>
<p>The system planning committee of <span class="boldred">MISO’s</span> board of directors endorsed the MISO Transmission Expansion Plan 2011 (MTEP11), a comprehensive long-term regional plan for $6.5 billion in electric grid infrastructure investments. MTEP11 recommends 215 new projects, including 16 multi-value projects (MVPs) that provide regional benefits and support state and federal energy policy objectives approved in the MISO region. MISO says the 2011 MVP portfolio is estimated to deliver between 1.8 and 3 times more benefits than it costs. The average residential customer will bear an investment cost of about $11 a year to receive the annual benefit of $23 in lowered energy costs.</p>
<h4>Smart Grid</h4>
<p><span class="boldred">Survalent Technology</span> commissioned a new SCADA system for Mohave Electric Cooperative, which serves 39,000 customers across a 1,300 square-mile area of northwestern Arizona. Survalent also installed a new SCADA system for <span class="boldred">City of Azusa Light &amp; Water</span>, a member of Southern California Public Power Authority (SCPPA) serving about 15,000 customers. </p>
<p>Tennessee’s <span class="boldred">Bolivar Energy Authority</span> (BEA) selected <span class="boldred">Elster EnergyAxis</span> for its advanced metering infrastructure (AMI) system. Elster’s smart meters will be installed by BEA at residential and commercial locations with a project completion date of September 2012.</p>
<p><span class="boldred">Maui Electric Co.</span> (MECO) and the <span class="boldred">Hawaii Natural Energy Institute at the University of Hawaii</span> (HNEI) selected <span class="boldred">Silver Spring Networks</span> as part of its smart grid pilot project on the island of Maui. Silver Spring Networks is developing a customer engagement program in partnership with MECO and HNEI, and will provide AMI, distributed generation monitoring, demand response, and distribution automation solutions. The demonstration project is funded by the U.S. Department of Energy. Other project partners include the Hawaiian Electric Co. (HECO), County of Maui, Maui Economic Development Board, Sustainable Living Institute of Maui at the University of Hawaii-Maui College, HNU Energy, and SRA International.</p>
<p><span class="boldred">eMeter</span> and <span class="boldred">HD Supply Utilities</span> implemented an agreement that offers eMeter’s meter data management appliance as part of HD Supply’s GridAdvance smart grid system. HD Supply will work with eMeter to manage technical integration.</p>
<h4>People</h4>
<p>The solar and hydro division of <span class="boldred">Siemens Energy</span> appointed <span class="boldred">Theodor (Ted) Scheidegger</span> as CEO effective Nov. 10, 2011. Scheidegger previously held executive positions in various companies, most recently as CEO of Sovello AG.</p>
<p><span class="boldred">Eco Power Solutions</span>, which provides emission control and energy recovery systems, appointed <span class="boldred">Thomas J. Bartolomei</span> as CEO. He most recently served as chief commercial officer and s.v.p. for AREVA Solar.</p>
<p><span class="boldred">Ener1</span> appointed <span class="boldred">Alex Sorokin</span> as interim CEO to lead the company’s efforts to shift its business toward heavy-duty transportation and grid-scale electricity storage applications.</p>
<p><span class="boldred">Nicholas Brunero</span>, who served as Ener1’s general counsel since 2008, accepted the additional role of interim president. <span class="boldred">Dale E. Parker</span>, currently chairman of the board of HickoryTech, will serve as interim CFO.</p>
<p> </p>
</div></div></div><div class="field field-name-field-article-category field-type-taxonomy-term-reference field-label-above clearfix"><h3 class="field-label">Category (Actual): </h3><ul class="links"><li class="taxonomy-term-reference-0"><a href="/article-categories/generation-markets">Generation &amp; Markets</a></li><li class="taxonomy-term-reference-1"><a href="/article-categories/td-grid">T&amp;D Grid</a></li><li class="taxonomy-term-reference-2"><a href="/article-categories/finance">Finance</a></li></ul></div><div class="field field-name-field-members-only field-type-list-boolean field-label-above"><div class="field-label">Viewable to All?:&nbsp;</div><div class="field-items"><div class="field-item even"></div></div></div><div class="field field-name-field-article-featured field-type-list-boolean field-label-above"><div class="field-label">Is Featured?:&nbsp;</div><div class="field-items"><div class="field-item even"></div></div></div><div class="field field-name-field-department field-type-taxonomy-term-reference field-label-above clearfix"><h3 class="field-label">Department: </h3><ul class="links"><li class="taxonomy-term-reference-0"><a href="/department/vendor-neutral">Vendor Neutral</a></li></ul></div><div class="field field-name-field-fortnightly-40 field-type-list-boolean field-label-above"><div class="field-label">Is Fortnightly 40?:&nbsp;</div><div class="field-items"><div class="field-item even"></div></div></div><div class="field field-name-field-law-lawyers field-type-list-boolean field-label-above"><div class="field-label">Is Law &amp; Lawyers:&nbsp;</div><div class="field-items"><div class="field-item even"></div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-above clearfix">
<div class="field-label">Tags:&nbsp;</div>
<div class="field-items">
<a href="/tags/aep">AEP</a><span class="pur_comma">, </span><a href="/tags/aep-ohio">AEP Ohio</a><span class="pur_comma">, </span><a href="/tags/aes">AES</a><span class="pur_comma">, </span><a href="/tags/aes-corp">AES Corp.</a><span class="pur_comma">, </span><a href="/tags/alex-sorokin">Alex Sorokin</a><span class="pur_comma">, </span><a href="/tags/american-electric-power">American Electric Power</a><span class="pur_comma">, </span><a href="/tags/american-recovery-and-reinvestment-act">American Recovery and Reinvestment Act</a><span class="pur_comma">, </span><a href="/tags/ami">AMI</a><span class="pur_comma">, </span><a href="/tags/areva-solar">AREVA Solar</a><span class="pur_comma">, </span><a href="/tags/bank-america">Bank of America</a><span class="pur_comma">, </span><a href="/tags/bank-america-merrill-lynch">Bank of America Merrill Lynch</a><span class="pur_comma">, </span><a href="/tags/bea">BEA</a><span class="pur_comma">, </span><a href="/tags/blink">Blink</a><span class="pur_comma">, </span><a href="/tags/blink-pedestal">Blink Pedestal</a><span class="pur_comma">, </span><a href="/tags/blythe">Blythe</a><span class="pur_comma">, </span><a href="/tags/bolivar-energy-authority">Bolivar Energy Authority</a><span class="pur_comma">, </span><a href="/tags/cfe">CFE</a><span class="pur_comma">, </span><a href="/tags/chargepoint">ChargePoint</a><span class="pur_comma">, </span><a href="/tags/citi">Citi</a><span class="pur_comma">, </span><a href="/tags/coda-automotive">CODA Automotive</a><span class="pur_comma">, </span><a href="/tags/comision-federal-de-la-electricidad">Comision Federal de la Electricidad</a><span class="pur_comma">, </span><a href="/tags/commission">Commission</a><span class="pur_comma">, </span><a href="/tags/coulomb">Coulomb</a><span class="pur_comma">, </span><a href="/tags/coulomb-technologies">Coulomb Technologies</a><span class="pur_comma">, </span><a href="/tags/cpp">CPP</a><span class="pur_comma">, </span><a href="/tags/dale-e-parker">Dale E. Parker</a><span class="pur_comma">, </span><a href="/tags/department-energy">Department of Energy</a><span class="pur_comma">, </span><a href="/tags/direct-energy">Direct Energy</a><span class="pur_comma">, </span><a href="/tags/doe">DOE</a><span class="pur_comma">, </span><a href="/tags/dpl">DPL</a><span class="pur_comma">, </span><a href="/tags/duke-energy">Duke Energy</a><span class="pur_comma">, </span><a href="/tags/duke-energy-renewables">Duke Energy Renewables</a><span class="pur_comma">, </span><a href="/tags/eco-power-solutions">Eco Power Solutions</a><span class="pur_comma">, </span><a href="/tags/ecotality">ECOtality</a><span class="pur_comma">, </span><a href="/tags/elster">Elster</a><span class="pur_comma">, </span><a href="/tags/elster-energyaxis">Elster EnergyAxis</a><span class="pur_comma">, </span><a href="/tags/emcor-group">EMCOR Group</a><span class="pur_comma">, </span><a href="/tags/emeter">eMeter</a><span class="pur_comma">, </span><a href="/tags/ener1">Ener1</a><span class="pur_comma">, </span><a href="/tags/energyaxis-0">EnergyAxis</a><span class="pur_comma">, </span><a href="/tags/enn-solar-energy">ENN Solar Energy</a><span class="pur_comma">, </span><a href="/tags/esa-renewables">ESA Renewables</a><span class="pur_comma">, </span><a href="/tags/ev">EV</a><span class="pur_comma">, </span><a href="/tags/evs">EVs</a><span class="pur_comma">, </span><a href="/tags/exelon">Exelon</a><span class="pur_comma">, </span><a href="/tags/exelon-generation">Exelon Generation</a><span class="pur_comma">, </span><a href="/tags/ge">GE</a><span class="pur_comma">, </span><a href="/tags/ge-energy-industrial-solutions">GE Energy Industrial Solutions</a><span class="pur_comma">, </span><a href="/tags/hawaii-natural-energy-institute-university-hawaii">Hawaii Natural Energy Institute at the University of Hawaii</a><span class="pur_comma">, </span><a href="/tags/hawaiian-electric">Hawaiian Electric</a><span class="pur_comma">, </span><a href="/tags/hawaiian-electric-co">Hawaiian Electric Co</a><span class="pur_comma">, </span><a href="/tags/hd-supply-utilities">HD Supply Utilities</a><span class="pur_comma">, </span><a href="/tags/heco">HECO</a><span class="pur_comma">, </span><a href="/tags/hnei">HNEI</a><span class="pur_comma">, </span><a href="/tags/home-warranty-america">Home Warranty of America</a><span class="pur_comma">, </span><a href="/tags/interconnection">Interconnection</a><span class="pur_comma">, </span><a href="/tags/iso">ISO</a><span class="pur_comma">, </span><a href="/tags/jp-morgan-0">JP Morgan</a><span class="pur_comma">, </span><a href="/tags/maryland-port-administration">Maryland Port Administration</a><span class="pur_comma">, </span><a href="/tags/maui-electric-co">Maui Electric Co</a><span class="pur_comma">, </span><a href="/tags/meco">MECO</a><span class="pur_comma">, </span><a href="/tags/merrill-lynch">Merrill Lynch</a><span class="pur_comma">, </span><a href="/tags/miami-dade-water-and-sewer-department">Miami Dade Water and Sewer Department</a><span class="pur_comma">, </span><a href="/tags/miso">MISO</a><span class="pur_comma">, </span><a href="/tags/mvp">MVP</a><span class="pur_comma">, </span><a href="/tags/national-energy-renewable-corp">National Energy Renewable Corp</a><span class="pur_comma">, </span><a href="/tags/nei">NEI</a><span class="pur_comma">, </span><a href="/tags/nerc">NERC</a><span class="pur_comma">, </span><a href="/tags/network">Network</a><span class="pur_comma">, </span><a href="/tags/new-jersey">New Jersey</a><span class="pur_comma">, </span><a href="/tags/nicholas-brunero">Nicholas Brunero</a><span class="pur_comma">, </span><a href="/tags/nissan-leaf">Nissan LEAF</a><span class="pur_comma">, </span><a href="/tags/nissan-north-america">Nissan North America</a><span class="pur_comma">, </span><a href="/tags/nna">NNA</a><span class="pur_comma">, </span><a href="/tags/nrg">NRG</a><span class="pur_comma">, </span><a href="/tags/nrg-energy">NRG Energy</a><span class="pur_comma">, </span><a href="/tags/oem">OEM</a><span class="pur_comma">, </span><a href="/tags/par-electrical-contractors">PAR Electrical Contractors</a><span class="pur_comma">, </span><a href="/tags/pepco-energy-services">Pepco Energy Services</a><span class="pur_comma">, </span><a href="/tags/pjm">PJM</a><span class="pur_comma">, </span><a href="/tags/pjm-interconnection">PJM Interconnection</a><span class="pur_comma">, </span><a href="/tags/ppa">PPA</a><span class="pur_comma">, </span><a href="/tags/public-utilities-commission-ohio">Public Utilities Commission of Ohio</a><span class="pur_comma">, </span><a href="/tags/pv">PV</a><span class="pur_comma">, </span><a href="/tags/quanta-services">Quanta Services</a><span class="pur_comma">, </span><a href="/tags/recovery">Recovery</a><span class="pur_comma">, </span><a href="/tags/reg">REG</a><span class="pur_comma">, </span><a href="/tags/renewable">Renewable</a><span class="pur_comma">, </span><a href="/tags/renewable-energy">Renewable Energy</a><span class="pur_comma">, </span><a href="/tags/scada">SCADA</a><span class="pur_comma">, </span><a href="/tags/sce">SCE</a><span class="pur_comma">, </span><a href="/tags/shaw-group-0">Shaw Group</a><span class="pur_comma">, </span><a href="/tags/siemens">Siemens</a><span class="pur_comma">, </span><a href="/tags/siemens-energy">Siemens Energy</a><span class="pur_comma">, </span><a href="/tags/silver-spring-networks-0">Silver Spring Networks</a><span class="pur_comma">, </span><a href="/tags/solar">Solar</a><span class="pur_comma">, </span><a href="/tags/solar-power-partners">Solar Power Partners</a><span class="pur_comma">, </span><a href="/tags/solarcity-0">SolarCity</a><span class="pur_comma">, </span><a href="/tags/southern-california-edison">Southern California Edison</a><span class="pur_comma">, </span><a href="/tags/standard-solar">Standard Solar</a><span class="pur_comma">, </span><a href="/tags/storage">storage</a><span class="pur_comma">, </span><a href="/tags/survalent-technology">Survalent Technology</a><span class="pur_comma">, </span><a href="/tags/technology">Technology</a><span class="pur_comma">, </span><a href="/tags/tennessee-valley-authority-0">Tennessee Valley Authority</a><span class="pur_comma">, </span><a href="/tags/tep">TEP</a><span class="pur_comma">, </span><a href="/tags/transmission">Transmission</a><span class="pur_comma">, </span><a href="/tags/tva">TVA</a><span class="pur_comma">, </span><a href="/tags/us-department-energy">U.S. Department of Energy</a><span class="pur_comma">, </span><a href="/tags/us-renewables-group">U.S. Renewables Group</a><span class="pur_comma">, </span><a href="/tags/washington-gas-energy-services">Washington Gas Energy Services</a><span class="pur_comma">, </span><a href="/tags/wges">WGES</a> </div>
</div>
Sun, 01 Jan 2012 05:00:00 +0000puradmin13437 at http://www.fortnightly.comNews Digesthttp://www.fortnightly.com/fortnightly/1998/10-0/news-digest-0
<div class="field field-name-field-import-byline field-type-text-long field-label-inline clearfix"><div class="field-label">Byline:&nbsp;</div><div class="field-items"><div class="field-item even"><p>Lori A. Burkhart, Phillip S. Cross, and Beth Lewis</p>
</div></div></div><div class="field field-name-field-import-volume field-type-node-reference field-label-inline clearfix"><div class="field-label">Magazine Volume:&nbsp;</div><div class="field-items"><div class="field-item even">Fortnightly Magazine - October 15 1998</div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><p> State PUCs </p>
<p> ISO GUIDELINES. Marking a contrast with California, but lining up with states in the Northeast, the Iowa Utilities Board has urged that independent system operators should have authority to order redispatch to help fulfill service requirements for electric transmission. That rule came as part of a set of principles issued by the board to guide the formation of ISOs in managing electric transmission systems and preventing the exercise of market power. </p>
<p> By urging redispatch authority, the Iowa board sided with ISO designs for PJM and New York, whereas in California, the ISO must rely on a secondary auction by scheduling coordinators to accomplish redispatch. </p>
<p> The Iowa guidelines also provide for recovery of approved transmission revenue requirements by owners of the transmission facilities. The board cautioned, however, that "future changes" in the electric industry may cause it to "rethink one or more of the principles." Docket No. NOI-95-1, July 27, 1998 (Iowa U.B.). </p>
<p> GAS RATE DESIGN. To counteract price volatility, the New Mexico Public Utility Commission directed PNM Gas Services to offer two pricing plans to residential gas customers that feature fixed-rate options: (1) a low, fixed customer fee with a higher, more-volatile volumetric rate, and (2) a higher, fixed charge and a lower, more-stable variable component. It rejected a call for a move back to a lower-priced, single-tiered rate design. Case No. 2762, Aug. 7, 1998 (N.M.P.U.C.). </p>
<p> NEW JERSEY RESTRUCTURING. Administrative Law Judge Louis G. McAfoos at the New Jersey Board of Public Utilities issued an initial decision recommending that Public Service Electric &amp; Gas Co. should be allowed to recover $2.5 billion in stranded costs, less than one-half of the $5.5 billion that PSE&amp;G had requested. The ALJ also recommended a rate cut of between 10-12 percent. Electric restructuring legislation was expected to be introduced in the New Jersey legislature in September and be signed into law by the end of the year. (Docket PUC 7347- 97 and 7348-97, Aug. 17, 1998, N.J.B.P.U.). </p>
<p> EMPLOYEE TRANSITION BENEFITS. The Maine Public Utilities Commission adopted rules forcing utilities to cushion the effects of job loss associated with the onset of retail competition in the electric industry, set for March 1, 2000 in Maine. </p>
<p> Under the rules, electric utilities must help employees in maintaining fringe benefits and obtaining new employment. They must provide: (1) retraining and outplacement services for two years; (2) full tuition for two years at the University of Maine or a state vocational or technical school; (3) equivalent health insurance for 2 years; and (4) severance pay equal to two weeks of base pay for each year of full-time employment. The PUC will review the programs only to determine if they meet minimum requirements. Docket No. 98-238, July 1, 1998 (Me.P.U.C.). </p>
<p> MARKETING AFFILIATES. State regulators in Michigan and Virginia have set down conditions by which utility marketing affiliates may participate in pilot programs for customer choice sponsored by the parent company. </p>
<p> n On the electric side, the Michigan Public Service Commission has ruled that the affiliate CMS Marketing, Services and Trading Co. may participate in a direct access pilot sponsored by the utility Consumers Power Co., but that any sales the affiliate makes will not count as part of the limited capacity reserved to competitors, or otherwise displace participation in the pilot by unaffiliated competitors, even though the affiliate will not sell power purchased from the utility. Case No. U-11485, July 24, 1998 (Mich.P.S.C.). </p>
<p> n On the gas side, the Virginia State Corporation Commission has authorized Washington Gas Light Co. to permit its affiliate, Washington Gas Energy Services Inc., to participate in its pilot program for retail choice, provided that WGL administers the program equally between the affiliate and unaffiliated competitors. Like other suppliers in the pilot, WGES may elect to use the WGL's capacity on upstream interstate pipelines to arrange deliveries of gas supplies to end users. Case No. PUA980005, July 15, 1998 (Va.S.C.C.). </p>
<p> CORPORATE GOODWILL. In adopting rules governing utility affiliates and non-core activities, the Maine Public Utilities Commission will require utility marketing affiliates to reimburse utilities over a three-year period for the value of corporate goodwill. At that time, the PUC will reassess goodwill value and if needed, it will require a second three-year period for affiliates to pay down all goodwill, by which time the asset value must reach zero. Docket No. 97-886, July 7, 1998 (Me.P.U.C.). </p>
<p> METERING AND BILLING. The Maine Public Utilities Commission has proposed two options concerning metering, billing and collections for interactions between electric utilities and competitive suppliers of generation services. The two options are: (1) "complete billing," whereby the utility provides one monthly bill for transmission, distribution, and generation and (2) "pass-through billing," where the utility provides one monthly bill for delivery and the generator provides another bill for its services. Docket No. 98-482, July 6, 1998 (Me.P.U.C.). </p>
<p> The PUC also has adopted a final rule that requires electric utilities to issue bills that break out the cost of capacity, electricity, transmission and distribution charges and other charges for electric service. The rule requires unbundling of only an "illustrative electric supply rate." Customers would see the cost of the portion of electric service that will be available competitively in the future. The rule does not require unbundled bills to contain substantial amounts of new information. Docket No. 98-306, June 30, 1998 (Me.P.U.C.). </p>
<p> ELECTRIC RATE CUTS. The Virginia Corporation Commission on Aug. 7 approved a rate case settlement directing Virginia Power Co. to grant more than $700 million to customers in refunds and rate cuts, marking the largest such order in Virginia history. </p>
<p> An immediate, one-time refund of $150 million within 90 days of the order will provide an average credit of $53 to residential customers. Then, in a two-phased rate cut, the utility will reduce rates by $100 million retroactive to March, which translates into a rate cut of about $2.30 per month, with an additional $50 million cut starting March 1, 1999. Also, rates cannot be raised again until March 1, 2002. Virginia Power will write-off $220 million in regulatory assets over a four-year period. </p>
<p> UNIVERSAL SERVICE FUNDS. The California Public Utilities Commission adopted $305.2 million in rate reductions for basic residential and business tariffs for Pacific Bell as a permanent offset for the carrier's receipt of universal service funds. The PUC said the new rates would not sink below levels now existing in the competitive market. A.97-03-004, D.98-07-033, July 2, 1998 (Cal.P.U.C.). </p>
<p> Electric Reliability </p>
<p> FERC ENABLING LEGISLATION. U.S. congressmen Edward J. Markey (D-Mass.) and Tom Delay (R-Texas) on Aug. 7 introduced a bill to improve reliability of the nation's electric system. </p>
<p> The Electric System Reliability Act of 1998 (H.R. 4432) does not seek to restructure the electric industry, but does aim to ensure that as restructuring takes place reliability does not degrade. Specifically, the bill would expand the authority of the Federal Energy Regulatory Commission to allow it to: (1) create a self-regulating reliability organization; (2) establish independent system operators to control the nation's electric transmission wires; (3) require utilities to divest themselves of generation or transmission assets; and (4) order interconnection of transmission systems. </p>
<p> The bill also would allow "exempt transmitting utilities" - utilities that could own transmission systems outside their service territories without becoming subject to the Public Utility Holding Company Act. It would encourage states to establish single siting boards, but would allow ISOs to assume responsibility for transmission siting if states fail to set up siting boards. </p>
<p> NERC REFORM LEGISLATION. The North American Electric Reliability Council has released a draft of proposed legislation, termed the Electric Reliability Act of 1998, describing procedures by which the FERC would certify and regulate a new North American Electric Reliability Organization as the nation's one and only self-regulating reliability organization. The proposed legislation, based upon an outline announced in April in a report issued by NERC's Government Interface Issues Task Group, was to be taken up by NERC board of trustees meeting in mid-September, but no final action was expected. </p>
<p> The draft legislation parallels some of the provisions of the Delay/Markey bill (see above), but differs in other material respects. </p>
<p> Under the bill, NAERO would develop and enforce reliability standards, maintain security for short-term reliability and "assess and encourage" the long-term adequacy of electric power supply. NAERO would execute agreements with so-called "affiliated regional reliability organizations," but the draft does little to explain how the ARROs would function, or how the FERC would resolve disputes between the national and regional organizations. Costs incurred by NAERO and the ARROs would be assessed and "equitably allocated" to control area operators, to be recovered in rates paid by users of the bulk power system. </p>
<p> By late August, many groups had filed comments on the draft legislation, including the Electric Consumers Resource Council, the National Association of Regulatory Utility Commissioners, regulatory staff at the New York, California and Oregon utility commissions, and some utility companies, such as Arizona Public Service Co., Pacific Gas &amp; Electric Co., Southern California Edison Co., and Public Service Electric &amp; Gas Co. For full text of the draft legislation and comments, see <a href="http://www.naero.org/legislation.html">www.naero.org/legislation.html</a>. </p>
<p> Public Power </p>
<p> HYDROELECTRIC SALE. The first sale of a federal power administration was completed when the Alaska Power Administration and the Alaska Industrial Development and Export Authority transferred APA's Snettisham hydroelectric project to non-federal owners for $82 million on Aug. 18. </p>
<p> The Alaska Power Administration Asset Sale and Termination Act of 1995 authorized the termination of APA and sale of all its assets under previously negotiated purchase agreements. They have pursued divestiture of APA's two hydroelectric projects since 1986. </p>
<p> POWER MARKETING ADMINISTRATIONS. The U.S. General Accounting Office has found that monitoring activities of the Department of Energy's four power marketing administrations do not ensure that the federal government recovers the full cost of its power-related activities from the beneficiaries of public power. The PMAs examined are Bonneville Power Administration, Southeastern Power Administration, Southwestern Power Administration, and Western Area Power Administration. </p>
<p> GAO further reports that where unrecovered power-related costs have resulted in financial losses to the federal government, and the problems have been reported to the PMA management, that progress toward resolving issues has been slow or nonexistent. </p>
<p> The report explains that the PMAs' costs and power-related costs of the agencies that produce the power marketed by the PMAs are required by law to be repaid. Repayment is to be made through revenues from federal power sales. Two congressmen, Rep. John R. Kasich (R-Ohio), chairman of the Committee on the Budget, and John T. Doolittle (R-Calif.), chairman of the Subcommittee on Water Power, had asked that GAO investigate the under-recovery of certain costs and the large amount of debt outstanding - over $14 billion as of Sept. 30, 1997. </p>
<p> Courts </p>
<p> OVERSEAS INVESTMENTS. A federal appeals court ruled that when a ratepayer advocacy group failed to raise legal issues at the administrative level, it lost any right to appeal a ruling by the Securities and Exchange Commission that had allowed Southern Company to invest up to 100 percent of retained earnings in certain exempt wholesale generators and foreign utility companies. The group had argued that the SEC erred by failing to require the utility to identify the individual investments and demonstrate that each one would not pose a substantial adverse impact on Southern's operating subsidiaries or their customers. Campaign for a Prosperous Georgia v. SEC, Nos. 96-8655, 97-8123, 1998 WL 466568, Aug. 11, 1998 (11th Cir.). </p>
<p> INDEMNITY FOR NEGLIGENCE. The Mississippi Supreme Court has declared void a liability indemnity clause in a state-approved contract between Entergy Mississippi Inc. and one of its industrial customers, explaining that the clause violated state law regarding a utility's duty to protect the public safety. </p>
<p> Entergy argued that the clause barred a suit by the customer's employees to recover damages for injuries sustained when a painting scaffold came into contact with power lines, claiming that the injury stemmed from the customer's illegal or unsafe work practices. Instead, the court said that regulators had exceeded their authority in approving the indemnity clause. It added that the clause would allow Entergy to escape liability for its own negligence in maintaining its power lines. Entergy Mississippi, Inc. v. Burdette Gin Co., No. 97-CA-00481- SCT, Aug. 6, 1998 (Miss.). </p>
<p> MOBIL/SIERRA DOCTRINE. The U.S. Court of Appeals for the District of Columbia Circuit has upheld a ruling by the Federal Energy Regulatory Commission directing Mohave Pipeline Co. to redesign rates for interstate natural gas transportation to employ the straight fixed-variable method, even though shippers had previously negotiated contracts with the pipeline for rates using the modified fixed-variable method. </p>
<p> The shippers claimed the new rate interfered with the contracts by reallocating risk for fixed-cost investment from the pipeline to customers, but the court ruled that the legal doctrine protecting parties to negotiated rate contracts from changes imposed by regulators did not apply because the FERC had shown that retention of the MFV rates would adversely affect the public interest. Texaco Inc. v. FERC, No. 93-1515 et al., 1998 WL 396242, July 17, 1998 (D.C.Cir). </p>
<p> News Digest is compiled by Lori A. Burkhart and Phillip S. Cross contributing legal editors, and by Beth Lewis, editorial assistant. </p>
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<a href="/tags/arizona-public-service">Arizona Public Service</a><span class="pur_comma">, </span><a href="/tags/arizona-public-service-co">Arizona Public Service Co.</a><span class="pur_comma">, </span><a href="/tags/bonneville-power-administration">Bonneville Power Administration</a><span class="pur_comma">, </span><a href="/tags/california-public-utilities-commission">California Public Utilities Commission</a><span class="pur_comma">, </span><a href="/tags/commission">Commission</a><span class="pur_comma">, </span><a href="/tags/consumers-power">Consumers Power</a><span class="pur_comma">, </span><a href="/tags/cost">Cost</a><span class="pur_comma">, </span><a href="/tags/department-energy">Department of Energy</a><span class="pur_comma">, </span><a href="/tags/dr">DR</a><span class="pur_comma">, </span><a href="/tags/entergy">Entergy</a><span class="pur_comma">, </span><a href="/tags/entergy-mississippi">Entergy Mississippi</a><span class="pur_comma">, </span><a href="/tags/esi">ESI</a><span class="pur_comma">, </span><a href="/tags/federal-energy-regulatory-commission">Federal Energy Regulatory Commission</a><span class="pur_comma">, </span><a href="/tags/ferc">FERC</a><span class="pur_comma">, </span><a href="/tags/fit">FIT</a><span class="pur_comma">, </span><a href="/tags/gas">GAS</a><span class="pur_comma">, </span><a href="/tags/ge">GE</a><span class="pur_comma">, </span><a href="/tags/gis">GIS</a><span class="pur_comma">, </span><a href="/tags/gui">GUI</a><span class="pur_comma">, </span><a href="/tags/ice">ICE</a><span class="pur_comma">, </span><a href="/tags/iso">ISO</a><span class="pur_comma">, </span><a href="/tags/it">IT</a><span class="pur_comma">, </span><a href="/tags/maine-public-utilities-commission">Maine Public Utilities Commission</a><span class="pur_comma">, </span><a href="/tags/michigan-public-service-commission">Michigan Public Service Commission</a><span class="pur_comma">, </span><a href="/tags/national-association-regulatory-utility-commissioners">National Association of Regulatory Utility Commissioners</a><span class="pur_comma">, </span><a href="/tags/nerc">NERC</a><span class="pur_comma">, </span><a href="/tags/new-jersey">New Jersey</a><span class="pur_comma">, </span><a href="/tags/new-jersey-board-public-utilities">New Jersey Board of Public Utilities</a><span class="pur_comma">, </span><a href="/tags/nist">NIST</a><span class="pur_comma">, </span><a href="/tags/pacific-gas-electric">Pacific Gas &amp; Electric</a><span class="pur_comma">, </span><a href="/tags/pjm">PJM</a><span class="pur_comma">, </span><a href="/tags/pseg">PSE&amp;G</a><span class="pur_comma">, </span><a href="/tags/reliability">Reliability</a><span class="pur_comma">, </span><a href="/tags/reliability-standards">reliability standards</a><span class="pur_comma">, </span><a href="/tags/res">RES</a><span class="pur_comma">, </span><a href="/tags/roe">ROE</a><span class="pur_comma">, </span><a href="/tags/southern-california-edison">Southern California Edison</a><span class="pur_comma">, </span><a href="/tags/southern-company">Southern Company</a><span class="pur_comma">, </span><a href="/tags/str">STR</a><span class="pur_comma">, </span><a href="/tags/ver">VER</a><span class="pur_comma">, </span><a href="/tags/washington-gas-energy-services">Washington Gas Energy Services</a><span class="pur_comma">, </span><a href="/tags/wges">WGES</a> </div>
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Thu, 15 Oct 1998 04:00:00 +0000puradmin9894 at http://www.fortnightly.com